PESHAWAR (MNN): Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday presented the province’s Rs2.17 trillion budget for the fiscal year 2026-27, projecting a fiscal deficit of Rs48 billion.
Beginning his budget speech, Afridi said that all PTI members of the provincial assembly had unanimously agreed to present the budget. The budget’s presentation had earlier faced uncertainty amid reports that the provincial government wanted a meeting with jailed PTI founder Imran Khan before finalising financial decisions.
The chief minister stated that despite the projected Rs48bn deficit, the provincial government would not seek loans and would instead arrange the required funds through its own resources for the welfare of the people.
He said the budget had been prepared in line with the Federal Board of Revenue’s tax collection target of Rs15.2 trillion and made it clear that no grants would be provided to the federal government. Afridi claimed that PTI representatives had informed the National Economic Council that any decision regarding grants to the Centre required consultation with Imran Khan, whom he described as the party’s final authority.
During his speech, Afridi reiterated PTI’s demands for access to Imran Khan, alleging that both Imran and his wife Bushra Bibi were being kept in isolation. He said the party had also demanded restoration of Imran’s fundamental rights, meetings with family members, access to personal doctors, communication with his sons, and permission to use television, books and newspapers.
Amid opposition protests in the assembly, the chief minister maintained that no draft agreement would be signed until PTI representatives were allowed to meet Imran Khan.
Presenting the fiscal roadmap, Afridi said the government’s focus was shifting from development towards broader prosperity and progress under its “Khushal Pakistan” vision, aimed at ensuring economic benefits reached ordinary citizens.
According to the budget documents, the province expects to receive Rs1.59 trillion through federal transfers, while provincial receipts are projected at Rs182.4 billion. Total revenues have been estimated at Rs2.12 trillion against expenditures of Rs2.17 trillion.
The budget allocates Rs1.64 trillion for current expenditures and Rs524.2 billion for the Annual Development Programme. Grants for the merged districts are estimated at Rs199 billion, while foreign-funded development projects are expected to receive Rs150 billion.
Federal development and non-development grants under the Public Sector Development Programme (PSDP) have been estimated at Rs5.1 billion.
The budget also proposes a 7 per cent increase in salaries and pensions for government employees. No new taxes have been introduced, while the infrastructure development cess has been reduced from 2 per cent to 0.75 per cent.
